On Tue, 8 Feb 2011 19:05:58 -0000, "Recliner"
wrote:

When my flat management company "hired" a small one man clamping
company, because we weren't VAT registered we had to pay the VAT due
on the "fines" collected (I could never work out why the person
being "fined" didn't have to pay it).


If the flat management company wasn't VAT registered (because the
turnover's below the threshold), then no need to add VAT to the clamping
fee.

Unless it was the one man company that was registered for VAT, so the
flat mgt co had to pay it but couldn't offset it against input tax?
(Though, as the OP says, why wouldn't it get passed on to the
clampees?)